Past year: ▼ 6%(5.80c – 9.30c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
9 June 2010drilling result▲ GoodMajor
CBM93-002 reached 1,044m TD on 7 June, intersecting just over 110m of cumulative coal in seams over 1m thick. It was the final well of the five-well 2009/10 CSG programme and is being plugged and abandoned, with further coal stratigraphic drilling under consideration.
4 June 2010drilling progress report● Neutral
CBM93-002 was at 772m, with coal seams individually over 10m thick; TD of 950-1,000m expected by 7 June. Ooraminna 2 spud slips again, now expected by 9 June, as rig equipment is still arriving.
31 May 2010drilling progress report● Neutral
CBM93-002 hit top Permian coal at 510m (3m of coal), with casing cemented and coring due to start. Central also notified a coal discovery in CBM107-002 (65m cumulative coal). Ooraminna 2 spud slipped past 31 May to about 4 June after rig components were not loaded out in time.
24 May 2010drilling progress report▲ Good
The first components of MB Century Rig #7 and camp reached Alice Springs on 22 May and are being unloaded at the Ooraminna 2 site. The rig is contracted to spud the well (up to 2 TCFG, high estimate) on or before 31 May.
24 May 2010drilling spud● Neutral
Central spudded CBM93-002 in EP 93 on 22 May, expected to take about 25 days, with net coal of about 90m prognosed. It is expected to be the last CSG well of the 2010 programme; more coal stratigraphic tests are being considered later in 2010.
17 May 2010drilling result▲ GoodMajor
CBM107-002 reached 604m TD with 65m of cumulative coal, including 16m and 20m seams, at a 38 km updip stepout from CBM107-001 (130m of coal). Gas content is untested: desorption tests are pending, and a Netherland Sewell review may take 6-8 weeks after the last well.
4 May 2010drilling progress report▲ Good
CBM107-002 in EP 107 hit coal at 237.6m, 32m shallower than the 270m forecast. Central (70%) says this will almost certainly mean remapping the Permian coal targets in the Pedirka Basin. It follows CBM107-001's 130m of coal.
3 May 2010drilling spud▲ Good
Central restarts its flood-delayed CSG programme, spudding CBM107-002 in EP 107 on 30 April. It targets coal about 31 km northwest and updip of CBM107-001, which hit 130m of coal, roughly triple the forecast. Central holds 70%.
15 Apr 2010drilling progress report▲ Good
Central says a road inspection at Johnstone Hill in EP 115 found up to $500,000 of savings, as light rain settled the ground and many kilometres of new road are unnecessary. Water well drilling for EP 115 wells is expected within a week.
7 Apr 2010drilling progress report● Neutral
CSG drilling, halted by heavy rain, is expected to resume by 16 April with CBM107-002, about 30 km updip of CBM107-001. Road clearing continues. MB Century Rig 7 passed the first phase of pre-spud inspection, and Ooraminna 2 is still targeted to spud 1 May.
26 Mar 2010drilling result▲ Good
Oil has been formally identified in a sample from 714.9m in CBM93-003 in the Pedirka Basin, which had earlier shown only trace oil. Central says it is not commercial but improves oil prospects, and it plans conditional oil drilling later in 2010. CSG drilling should resume within two weeks.
23 Mar 2010drilling progress report● Neutral
Access road and drilling pad for Ooraminna 2 are done or due to be finished by 23 March. CSG well CBM107-002 is delayed further by flooding; road repairs on the Binns Track are under way and an access update may follow within a week.
15 Mar 2010drilling scheduled▲ Good
Central starts road works to reach the Ooraminna 2 site, the first well of its 2010 conventional programme. The prospect may hold up to 2 TCFG (high estimate) in a 300 km2 structure, following Ooraminna 1, which flowed gas in 1963.
12 Mar 2010farm in farm out agreement▼ BadMajor
Red Sky says it will keep funding cash calls for the Pedirka coal seam gas wells in EP 93 and EP 107. It elects not to earn its 10% in a number of permits outside the Pedirka Basin, narrowing the 30 September 2009 Broadacre farm-in, which was in dispute with Central.
26 Feb 2010drilling result▲ GoodMajor
CBM107-001 reached 1,251m TD with 120m of coal in seams over 1m, against a prognosis of 20-40m, as in the earlier Pedirka wells (138m and 144m). Central says coal may need remapping, possibly lifting its coal exploration target. Results are preliminary.
11 Feb 2010drilling scheduled● Neutral
Central says the Phase One seismic (1,385 km) is about 250 km recorded and should finish in roughly four months. It is seeking rigs for 3-6 conventional wells, including Ooraminna 2 (up to 2 TCFG, high estimate) and Johnstone 1. These are plans, not results.
5 Feb 2010drilling spud● Neutral
Central spuds CBM107-001, the third well in the coal seam gas programme, on 4 February to test coal along strike from CBM93004. Purni coals are expected from about 860m, with planned total depth about 1,214m. Interests are Merlin 70%, PXA 20%, Red Sky 10%.
28 Jan 2010drilling result▼ Bad
CBM93003 reached 896m and will be plugged and abandoned; it found only two thin coals (0.4m and 1.2m), though they date-match coals in the other wells. Tar blebs in sandstone may hint at oil. Rig now moves to CBM107-001.
11 Jan 2010drilling spud● Neutral
Central spuds CBM93003, the second of five coal seam gas wells, in EP 93 about 30 km east of the earlier wells. It targets Purni coals with prognosed TD of 780m. Central now reports net coal using a 1m minimum seam cut-off.
6 Jan 2010drilling result▲ GoodMajor
CBM93004 reached 978m total depth with about 144m of coal in seams over 1m, versus 138m at CBM93001, showing coal continues updip without thinning. Gas results were fair to excellent, no oil or sandstone gas found. Rig moves to CBM93003, spud due 7 Jan.
21 Dec 2009drilling progress report▲ Good
CBM93004 reached 675m, with five significant coal seams and 57.23m net coal, about 12m more than the same interval at CBM93001. Gas desorption results are fair to exceptional, one sample yielding 2,700ml. Management calls results encouraging; the well is still drilling.
17 Dec 2009drilling progress report● Neutral
CBM93004 reached 552m in the Purni Formation with about 15m of coal and 1-3 units background methane. Partners approved planning and tendering for Phase Two 2010 (2,000 km seismic, Johnstone 1, Magee 2, an EP 97 well), subject to Phase One results. Phase One should finish March/April 2010.
8 Dec 2009drilling progress report● Neutral
CBM93004 reached 250m and 7-inch casing was run to 246m, with cementing next. The well is the first of five testing a 34-70 TCFG prospective CSG resource. No coal or gas results yet.
4 Dec 2009drilling spud▲ GoodMajor
Central spudded CBM93004, the first of five fully cored coal seam gas wells, in EP 93 about 9 km updip of CBM93001, which found over 140m of net coal in 2008. It targets Permian Purni coals prognosed from 550m, with 80-90m of net coal and a planned depth of 1,020m.
30 Nov 2009drilling progress report● Neutral
Wallis rig DS39 is in Alice Springs and the first of five coal seam gas wells is expected to spud around 3 December; Terrex seismic crews start line clearing by 2 December. Attached Phase Two 2010 plan is a proposal not yet endorsed by partners.
16 Nov 2009drilling scheduled● Neutral
Central confirms first well and seismic line clearing in the first week of December under the $32m Phase One programme. Joint venture partners approved or are deemed to have approved it. No agreement reached with PXA on Red Sky's entry, so the dispute goes to arbitration.
23 Oct 2009drilling scheduled▲ GoodMajor
Central submits a minimum work programme that it says is deemed unanimously approved under the JOA. It will contract Wallis Drilling for 5 cored coal seam gas wells and Terrex for 1,380 line km of seismic. PXA dispute talks continue to at least 6 November.
20 Oct 2009farm in farm out agreement● NeutralMajor
Great Southern Gas exercises its pre-emptive right over the EIR offer on EPA 130, on the same terms. If completed, GSG holds 45% and Central 55%, GSG funding the initial work. It still needs a formal farmout agreement. This replaces the EIR deal.
1 Oct 2009farm in farm out agreement▲ GoodMajor
Red Sky Energy signs a farmout to take at least 10% of 27 Central permits, funding 20% of the first three wells and first $3m of seismic per permit. It pays a $5m reserve premium per trillion cubic feet of 3P reserves. Excludes EP 97, Magee and Mt Kitty.
11 Aug 2009farm in farm out agreement▲ GoodMajor
Central signs a non-binding term sheet for EIR to earn 25% of EPA 130, cutting Central to 55%. EIR funds 60% of initial work and pays $10m per TCF of 3P reserves. Subject to board approval of a formal farmout.
